Fitch downgrades growth potential of developing countries
Credit rating agency downgrades GDP forecasts for some countries while revising them upwards for others and maintaining them South Africa and Türkiye
NEW YORK
International credit rating agency Fitch reported a reduction in its predicted medium-term potential growth rate for a group of 10 developing countries, lowering its forecast from 4% to 3.9%.
The agency revised its five-year potential GDP growth forecasts for emerging markets Wednesday.
The main reason for the move was a downward revision of China's potential growth rate from 4.6% to 4.3%.
Growth forecasts for Mexico, Indonesia and South Korea were downgraded, while Russia, Brazil, Poland and India were revised upwards.
Its forecasts for South Africa and Türkiye remained unchanged.
Fitch has forecast an average potential growth of 3.1% for the group of 10 developing countries.
Accordingly, five-year potential growth forecasts were revised down from 4.9% to 4.7% for Indonesia, from 2% to 1.8% for Mexico, and from 2.1% to 1.9% for South Korea.
The projected growth rate for India was raised from 6.2% to 6.4%, for Poland from 3% to 3.2%, for Brazil from 1.7% to 2% and for Russia from 0.8% to 1.2%.
The medium-term potential growth rate for South Africa was maintained at 1% and for Türkiye at 4.1%.
